Commercial real estate

Director of the Department of Management and Operation of Commercial Real Estate ILM Yuri Sigal took part in the discussion during the session “Own MC VS Attracted MC”. The congress participants discussed the situation on the market, revealed the main trends and tried to answer the question: which company would be more profitable to manage the facility: own or attracted? This year, the business program of the congress was devoted to two global themes: “Own MC VS Attracted MC” in the context of rationing costs and quality control of work and “Management of redevelopment objects” in various segments of commercial real estate. The event was attended by the leaders of large companies and representatives of the owners of commercial and office real estate.

O'KEY rented an office of over 5 000 sq. m in the business park Crystal, says the press service of the company ILM. The lease agreement was signed in October 2018. The office premises have been redecorated and the management of the O'KEY has already moved to a new office. BP Crystal is located in the south of the capital at the address: ul. Kirovogradskaya, 23A and 23Ak1. This is a modern class B + complex, which consists of two buildings with a total area of ​​43,000 square meters. The infrastructure of the facility includes: a dining room with a restaurant area, cafeterias, a service center, a 24-hour fitness center with a spa area, a pizzeria, a ground and underground parking and meeting rooms. More than 45 companies, including Credit Europe Bank, the central office of the «DA!» Hypermarkets, the American pharmaceutical company PPD and large IT companies, are tenants of the BP Kristall. Source - CRE https://www.cre.ru/news/74274

On October 24, 2018, ILM Managing Partner, Andrei Lukashev, spoke at the conference of the Russian-German Chamber of Commerce on the Economic and Effective Management of Construction and Real Estate Projects in Modern Conditions. Andrew told what is happening with vacant space, rental rates and trends in the office, warehouse and retail real estate market in Q3 2018. The conference also presented and discussed various aspects and mechanisms to improve the efficiency and profitability of industry projects. Representatives of Roedl und Partnern, Raiffeisen-Leasing, Beiten Burkhardt, RECHT & PARTNER Moscow Law Office, Brand & Partner, SPECTRUM took part as speakers.

On October 19, ILM managing partner Andrey Lukashev will talk about standards for measuring commercial real estate. On October 17-20, the 6th All-Russian Congress of Cadastral Engineers will be held at the site of the Cosmos Hotel. The purpose of the event is the formation of common approaches to the implementation of cadastral activities. Cadastre engineers, the largest Russian organizations working in the field of cadastre, geodesy and cartography will take part in the Congress. During the congress, the speakers will exchange the best practices of cadastral activities in Russia and the world, share their expectations for its further development. On October 19, in the framework of the session “Cadastral Activity in Russia: Experience of the Present and Looking into the Future”, ILM Managing Partner Andrey Lukashev will speak Andrei will talk about the application of international standards for measuring space in real estate During the presentation, the speaker will tell about the consequences of the absence of international measurement standards applicable worldwide, the current situation in resolving this issue, and the work of the committee on the development of international standards for measuring IPMS. Read more https://www.roscadastre.ru/congress/congress_ki_6/  

On September 21, 2017, the international law firm Noerr and the magazine Legal Insight held a business breakfast on the topic: “Lease of commercial real estate: rate on increase”, gathered more than 50 lawyers from major Russian and foreign companies in the retail, development, industrial production, etc. Against the background of a moderate growth rate of the Russian economy, 2017 has become quite dynamic and positive for the commercial real estate market. For market players it becomes obvious that now we can talk about its gradual stabilization and recovery after the crisis of 2015-2016. In this regard, lawyers of companies should “check watches” with current changes in legislation, to adjust existing own rental relations, to give management the necessary recommendations for strategic planning. Yuri Yudakov, director of ILM, a consultant in the field of commercial real estate, spoke about the current situation in the real estate market, in particular, warehouse and retail, shared macroeconomic forecasts and professional recommendations for choosing office space. The reports of the experts in the “Real Estate Investments” practice of Noerr were as practical as possible with useful links, recommendations and formulations based on their own experience and analysis of judicial practice. Asiya Takhtaeva, a senior lawyer at Noerr, on the example of a lease agreement, highlighted in detail the current changes in civil legislation and the nature of the development of judicial practice on controversial issues. Ekaterina Kalinina, a senior lawyer at Noerr, shared her recommendations on what is imperative to pay attention to when concluding rental agreements, taking into account the new rules for corporate approvals and registration, as well as recent trends in negotiating rental rates. Very interesing was the discussion of the case "Svyaznoy Logistics vs Warehouses 104". The invited guest was the lawyer of Svyaznoy Logistics, A.V. Taraburin. For the discussion on the controversial case, the organizers chose an interesting interview format, in which the representative of the plaintiff, answering questions from Noerr colleagues and business breakfast guests, spoke about the details of the case and justified the position of his client. Summing up the discussion, the head of the practice, Dr. Thomas Mundry, expressed the opinion that “having worked in Russia for 25 years,” he “observes positive trends in the introduction and use of best foreign practices in Russian law” and expressed hope “for further modernization of civil legislation” .  

Revaluation of the cadastral value of commercial real estate has become relevant due to changes in the Tax Code in 2014. In accordance with the current legislation, the tax on commercial real estate of legal entities is now calculated on the basis of the cadastral value of the object. Since this method of calculating the cost of space is not accurate and usually overestimates the real price by 20-30%, the question arises as to how to remove the unreasonable monetary burden from the business. The only one way out is to challenge the cadastral value of the object. Is it worth it? Before entering into long financial and legal debates, it is worthwhile to weigh everything thoroughly and calculate how much the influence of the tax burden on the company's budget is and by what amount it is possible to reduce. Information about the cadastral value of the object can be found using a paid service on the information portal of the Unified State Register of Real Estate (USRN). With a slight difference (7-10%), starting this does not make sense, since the cost of the resources expended will be higher than the profit gained. The budget for challenging the cadastral value is formed of several components: market valuation, legal advice and forensic expertise. Even with a positive decision in favor of the owner, the costs are not reimbursed. The difference in previously paid taxes is also not refundable. Court or Rosreestr? The owner has the right to choose in which of the state bodies to file an application for revaluation of the cadastral value - is can be either directly the Rosreestr commission or the territorial court. Statistics show that the number of decisions in favor of the owner in court is much more weighty. This is partly due to the interest of Rosreestr in additional revenues to the budget, the court is usually impartial. Time is not only money, but also taxes If it was decided to challenge the cadastral value of the property, it is necessary as soon as possible to collect all the necessary papers and start the process. The tax is calculated on the basis of the price that has been set in the current year, i.e. if the owner filed a lawsuit at the beginning of 2017, he will pay the tax at the price set in 2016. It is possible that legal proceedings may take several months, so efficiency, in this case, is definitely the main advantage. A stingy owner pays twice A significant role in the consideration of the case in court will be played by the market valuation, or more precisely the quality of the examination carried out. Even minor inaccuracies in the documents may cause the court to refuse to revise the cadastral value. Therefore, it is necessary to carefully and thoughtfully choose a company-appraiser, and it is better not to save money on its services. Word of mouth in this case will tell you which company is better, because even with an abundance of companies in this appraisal segment, their reputation is usually well known among owners. The speed of response, the quality of market expertise and legal advice play a crucial role in the reassessment. Do not hesitate and trust the professionals, then cadastral bondage will be left aside.  

The price of a commercial property is a specific thing. It is formed not from abstract categories, but from certain criteria: type of construction, quality of repair, planning, infrastructure, transport accessibility, improvement of the territory, prestige of the area. The higher the quality of the object, the higher the price, and there are no objective reasons to reduce it. Therefore, the proposal to rent an office in Moscow-City at the price of a room in the old administrative building is at least suspicious. We list the main points that may affect the pricing of the rental rate.  Poor transport accessibility The office is a place of constant circulation of employees and customers. It should be accessible and convenient. The road from home to office and back should not turn into an extreme journey. The proximity of metro stations, public transport stops, and road junctions is a significant advantage, which, of course, will not get to the tenant for free.  Lack of parking Another problem that lies behind the low rent - parking spaces. Paid parking or, in extreme cases, its absence will require additional cash injections above the rental rate. Moreover, if the problem with payment of parking spaces can still be solved, it is hardly possible to make up for their absence. Operating costs The rental rate in fact only the nominal figure. The real costs of maintaining the office will actually be somewhat higher. As a rule, operating costs are not protected in the lease agreement. The tenant pays utility bills, which consist of payments for hot and cold water, electricity, gas and heating. A separate item of expenditure is an Internet provider, which may turn out to be a monopolist and request an exorbitant price for its services. Preliminary acquaintance with the invoices paid by tenants will help solve this problem and estimate in advance what the actual costs of renting an office will be. "If you already swept away all the most depressive rent options and at first glance found a quality office, find out the size of operating costs," says Ekaterina Volkova, director of the ILM market research and analysis department. "They may be higher than you expect for a number of reasons. First, the building may be the only and expensive Internet provider. Usually such a provider, like the management company, is affiliated with the owner of the object. Such a situation is most common at class C facilities. Utility payments may be billed separately, and their size will be different every month, specify this nuance in advance, ”says Ekaterina.  Repair quality How much it will cost to repair, at best - finishing, office space - another serious question. The current roof, cracks in the walls, problems with engineering systems can cost as much as the nominal rental rate. Unfavorable infrastructure The proximity of the business center to industrial areas or landfills significantly reduces its cost, and, accordingly, the price tag for the rental of vacant space. The view of the wastelands and the exorbitant concentration of pollutants in the air do not contribute to the creation of a comfortable working space. Pricing policy in the commercial real estate market is quite logical, the more comfortable the room, the higher the rate. Renting an office for a nominal fee, be prepared to take along with the room and his problems.

The modern commercial real estate market involves a lot of solutions for renting an office: from minimalist premises in business centers to spacious halls of private residences. Let's see which of the options is optimal. Business center The obvious advantage of renting an office in a business center (BC) is the focus on creating comfortable working conditions. It assumes a developed infrastructure: cafes, ATMs, shops, salons, which will satisfy the needs of workers in the area of ​​permanent employment.  Building layout, communications, parking, security, communication services - business centers meet the criteria to ensure the most comfortable conditions for employees, as well as provide the opportunity to expand office space as the business expands and, accordingly, the staff. Specialists in the field of real estate ranking BC depending on the location, the quality of communications and repairs, as well as the level of prestige. The ideal option for business is class A and B + class business centers, which meet high standards of construction and are located within the Moscow TTC. Rental rates for which have decreased significantly compared with previous years. In large business centers, the tenant chooses a suitable area, floor, layout and other characteristics, being within the financial limit. Unconditional plus is a developed transport system, proximity to metro stations and land transport stops. Mansion The mansion is an isolated and private version of the organization of the working space. Moreover, we are talking here about both historic buildings of the Tsarist era (on Arbat, Tsvetnoy Boulevard, Khamovniki or Basmanny district), and about modern buildings in classical and modernist styles. Despite the difference in architectural solutions, common standards remain. Mansions are buildings with a small number of floors, adjacent territory, with an average area of ​​1000-2500 sq. m.. It is worth noting that each such building is architecturally unique and of historical value.  An important advantage is the possibility of placing the company logo on the facade of the building. By itself, full ownership of a separate building is an element of prestige. However,   in matters of functionality, mansions (especially with historical baggage) are inferior to BC. Layout in buildings of this type is far from the effective use of free space - entrance halls, stairs, attic and basements are difficult to adapt to the needs of the office. The tenant is also deprived of the opportunity to increase the working space while expanding the business. This option is most suitable for banks, foreign embassies, financial organizations and other enterprises that work daily with a large flow of people, because in this case the pass-through system in business centers will not be effective.  What is the result? BC is a practical and flexible option that meets the needs of the company and provides opportunities for expansion. In addition, utility payments, garbage and snow removal, cleaning of internal and external premises are divided among numerous tenants, which reduces the costs of maintaining a building by a single company. While the maintenance of the mansion rests entirely on the shoulders of a single tenant. The mansion is inferior in functionality, but at the same time personifies the prestige and stability of the company located in it. The best mansions and business centers of Moscow on our online service for the selection of office premises  www.amo.ru   

On May 24 in Moscow was the conference «Management of commercial real estate: experience and prospects for the implementation of IT solutions». The event is organized by the Association of Real Estate Market Professionals REPA. ILM Managing Partner Andrei Lukashev told market participants about the impact of IT solutions on risks and profitability when managing a real estate object. ILM experts have been collecting and detailed analysis of the commercial real estate market for more than 7 years, helping owners to form a stable rental flow. At the moment, there are at least 2000 office facilities, 300 shopping centers, 1600 warehouses in Moscow, and the total capitalization exceeds $ 100 billion. According to Andrei Lukashev, the market is moving towards the uberization of the process of selecting commercial space, when the work of a large number of brokers is optimized by modern IT solutions. Already, this approach is relevant in relation to small areas: on specialized sites, you can choose an office option in a few minutes, arrange a viewing and make a deal. For brokers, uberization means the ability to increase the number of customers, for owners - an increase in demand and views. In general, the process should be considered as a new powerful market driver.

On May 24, Andrey Lukashev, managing partner of ILM, will speak at the “Development Environment” event, the main topic of which will be “Management of commercial real estate: experience and prospects for implementing IT solutions”. Andrey will talk about the impact of IT solutions on risks and profitability when managing a real estate object, the best cases and main problems of the industry and practical ways to solve them. The event is organized by the Association of Real Estate Market Professionals REPA with the participation of the business IT integrator RedSys.

The largest Russian media holding Gazprom-Media, a subsidiary of OAO Gazprom, has leased the RochDell Center business center at the address: ul. Rochdelskaya, 20 to accommodate its headquarters.

The company « MegaFon » OJSC rented office space for one of its divisions in the Class A business center - « Legion I » . The total area of ​​office space leased by OJSC Megafon » is about 2,200 sq. m. Key requirements that « Megafon » OJSC made to new office premises include: minimum distance from the main office of the company located on Kadashevskaya Embankment and high quality office premises meeting modern world standards. Business Center « Legion I » , located on the street. Bolshaya Ordynka is one of the best examples of modern construction in the historical center of the city. A rare combination of a great location, modern technical equipment, luxury finishes, and services of a highly professional landlord determined the choice of the company. The new office of « Megafon »  OJSC fully meets the requirements of the company and provides a comfortable environment for employees. ILM Press Center